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Ethereum Spot ETF log in to the US stock market, with a first-day trading volume exceeding 400 million USD.
Ethereum Spot ETF Officially Logs in to the US Securities Market
On July 23, 2024, at 9:30 AM Eastern Time, nine Ethereum Spot ETFs will begin trading on the U.S. securities market, marking a new milestone for Ethereum digital assets. These ETFs are distributed across three major exchanges:
The CBOE Exchange has listed five ETFs:
The Nasdaq Stock Exchange has listed an ETF:
The New York Stock Exchange Arca electronic trading platform has listed three ETFs:
In addition, regulators have also approved Grayscale to convert its existing Ethereum Trust (ETHE) into a Spot ETF.
Within approximately 2 hours on the first trading day, the total trading volume of these ETFs reached 434 million dollars. Among them, Grayscale Ethereum Trust stood out, attracting 177.2 million dollars in inflows. In contrast, the trading volume of 21Shares Core Ethereum ETF was the lowest, at only 4.69 million dollars.
ETF analysis experts pointed out that the total trading volume of the Ethereum Spot ETF reached $112 million 15 minutes after trading began. Although this figure is quite considerable compared to the issuance of ordinary ETFs, it is only about half of the trading volume of the Bitcoin Spot ETF on its first day.
VanEck Ethereum ETF opened at a price of $50.06, ranking it at the top of the first batch of ETFs, while Grayscale Ethereum Mini Trust opened at the lowest price of only $3.26. However, its low price makes it the largest traded Ethereum Spot ETF by volume. Most other ETFs opened at prices between $20 and $30.
Although the price of Ethereum (ETH) saw a slight increase after the start of ETF trading, the overall performance was mediocre. As of 00:00 Singapore time on July 24, 2024, the daily increase of ETH was 0.46%, with a price of approximately 3455.2 USD.
Characteristics and Differences of Newly Listed ETFs
These newly launched Ethereum Spot ETFs are initiated by asset management companies, held by qualified custodians in physical ETH, and rely on professional market makers to create and redeem shares. They differ in their fee structures:
Most ETFs have a base rate around 0.25%, but there may be discounts or free periods in actual trading. Grayscale has the highest rate, reaching 2.5%.
ETF held ETH does not participate in staking
According to reports, some ETF issuers have sought to include ETH staking features in their products, but this request was rejected by regulators. The main reason is that withdrawing ETH from the Ethereum Beacon Chain may take several days, which does not align with the ETF's requirement for timely redemption of shares.
The Arrival of a New Era for Blockchain Assets
Digital asset investment experts believe that we have entered the era of blockchain asset ETFs. Investors can now access approximately 70% of the digital asset market through low-cost ETFs.
Industry insiders have pointed out that if Bitcoin is viewed as digital gold, then Ethereum can be seen as an open-source app store, serving as a gateway to many applications that utilize blockchain technology.
A research institution predicts that the Ethereum Spot ETF could attract between $15 billion and $20 billion in inflows in its first year on the U.S. securities market, which is comparable to the inflow amount of the Bitcoin Spot ETF in 7 months.